We have a similar problem in the US, with companies laying off employees. It is not in their shareholders best interest. Take a look at the value of companies emerging from a crisis who did not lay off employees. Southwest Airlines is a great example. Southwest avoided layoffs, when Braniff and Texas Air created a price war, or during 9/11, or during the 2008 financial crisis. In every case, they soared past their competition in stock value, market share and employee loyalty. They treat their employees as trusted partners, understanding, driving and participating in the profitable growth of the company. This strategy is not only more humane; it is also more successful. These Forbes and Harvard Business Review articles provide more background: https://hbr.org/2018/01/more-than-a-pay…http://www.forbes.com/sites/fotschcase/…
Its a good article. But I take exception to this statement, "Unfortunately, it is too optimistic to imagine that during a crisis your firm can sustain all employees." In the volatile airline business, Southwest Airlines has never had a layoff since its inception 40+ years ago. Family businesses, when faced with a crisis, don't layoff members of the family. It is precisely during times of crisis, one can tell just what employee loyalty means, or doesn't mean. These Forbes and Harvard Business Review articles provide more background on how to improve loyalty and business results: https://hbr.org/2018/01/more-than-a-pay…http://www.forbes.com/sites/fotschcase/…
BillFotsch says...
We have a similar problem in the US, with companies laying off employees. It is not in their shareholders best interest. Take a look at the value of companies emerging from a crisis who did not lay off employees. Southwest Airlines is a great example. Southwest avoided layoffs, when Braniff and Texas Air created a price war, or during 9/11, or during the 2008 financial crisis. In every case, they soared past their competition in stock value, market share and employee loyalty. They treat their employees as trusted partners, understanding, driving and participating in the profitable growth of the company. This strategy is not only more humane; it is also more successful. These Forbes and Harvard Business Review articles provide more background: https://hbr.org/2018/01/more-than-a-pay… http://www.forbes.com/sites/fotschcase/…
On PM condemns wealthy owners who rushed to lay off staff : Where’s your heart ... your compassion ... your soul?
Posted 21 April 2020, 8:45 a.m. Suggest removal
BillFotsch says...
Its a good article. But I take exception to this statement, "Unfortunately, it is too optimistic to imagine that during a crisis your firm can sustain all employees." In the volatile airline business, Southwest Airlines has never had a layoff since its inception 40+ years ago. Family businesses, when faced with a crisis, don't layoff members of the family. It is precisely during times of crisis, one can tell just what employee loyalty means, or doesn't mean.
These Forbes and Harvard Business Review articles provide more background on how to improve loyalty and business results: https://hbr.org/2018/01/more-than-a-pay… http://www.forbes.com/sites/fotschcase/…
http://tribune242.com/users/photos/2020…
On Planning to cope with every crisis
Posted 15 April 2020, 8:57 a.m. Suggest removal